A caveat loan is short-term funding secured by a caveat lodged over a property you own. It is a fast way to release equity for a settlement, a deposit or a short gap, where speed matters more than a long term. It is a commercial, business-purpose facility, not consumer credit.
A caveat is a notice lodged on a property title that records a lender's interest and prevents dealings without their consent. A caveat loan uses that caveat as security instead of registering a full mortgage, which makes it faster to put in place. Because a caveat sits behind any registered mortgage already on the title, it is generally used for short-term needs where speed is the priority and the loan is small relative to the property's value.
Caveat funding is short-term and ranks behind existing mortgages, so it is priced for that risk and that speed. The drivers are the available equity behind any registered debt, the LVR, the term and the strength of the exit. It usually costs more than mortgage-secured term debt and runs for a short period. We do not advertise a rate because it tracks the security position and the exit; the cost only makes sense where the opportunity it unlocks justifies it.
Both sit behind a first mortgage, but a second mortgage is a registered security that takes longer to put in place and suits larger, slightly longer facilities. A caveat loan relies on a lodged caveat, is faster to arrange and is generally smaller and shorter. For a quick, modest, short-term need a caveat can be the better fit; for a larger top-up a registered second mortgage often is.
A caveat loan is only worth doing where there is a clear exit and the cost is justified by what it unlocks. We aim to arrange it on that basis, take it to lenders who can move quickly, and keep the term as short as the exit allows.
A caveat is a notice of interest lodged on the title rather than a registered mortgage, which makes it faster to put in place. It sits behind any registered mortgage, so it is used for short-term, lower-leverage needs.
Often very quickly, because no new mortgage is registered. Real timing still depends on the title, any existing mortgagee's position and the legals, so it is best scoped against your deadline.
It depends on the situation and the existing loan terms. Some structures require the first mortgagee's consent; we work through that as part of arranging the facility.
Short-term by design, typically months, sized to a clear exit such as a sale, settlement or refinance.
Tell us about the project, the numbers, and the timeline. We will give you an honest read on whether we can fund it and what a suitable structure could look like. Email loans@bottomlinefinance.com.au or send the form.
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